How Much Do Moving Companies Make ?

March 29, 2023 Admin

As per a report by IBISWorld, the average profit margin for the moving industry is around 4.3%. This means that for every dollar of revenue, moving companies make a profit of around 4.3 cents.

A moving company’s average income per task is roughly $500 to $2,000. This implies that a movers that completes ten assignments in a single day can expect to earn between $5000 and $20,000.

A small moving company may charge between $50 and $200 to move a single furniture item, depending on the size and distance travelled.

If you are planning a career in this field, the first question you would have in your mind would be “how much profit can you make being a removalist?”

In this blog, we will take a closer look to make you understand how much profit can you make, how can you increase your profit, and how to increase your customers and generate new leads at a low price. This will help you understand the business and take an informed decision.

Are Moving companies profitable?

Yes, they are really profitable and make good money.

The high demand for moving services is one of the reasons why removalists remain lucrative even during difficult times.

According to U.S. Census data, around 31 million individuals relocated inside the United States in 2019, accounting for approximately 9.8% of the nation’s population. According to census data, the average American moves 11.7 times in their lifetime.

According to the American Moving & Storage Association, the removalists directly employ 186,722 individuals in the United States, with an additional 295,359 working as suppliers and in associated industries before and after moves.

Annual production for the sector and its suppliers is generally $85.7 billion. When the average cost of an in-state relocation is $980 and local removalists earn at least $25 per hour, it’s simple to see why.

The yearly net profit of a moving services firm is determined by a variety of factors, including the company’s size, customer types (commercial, home, or both), location, time of the move, and so on.

Given the overall size of the US moving industry of $19.4 billion the average annual turnover for a moving services business in the US is around $1,050,000.

The yearly turnover of a moving company is determined by a variety of factors, including the company’s size, pricing structure, customer types (commercial, home, or both), location, time of the move, and so on.

A removalist business may achieve extremely high profits if management does a good job of continually obtaining new clients while keeping expenditures low.

How Do Moving Companies Get Customers?

Male movers carrying shelving unit into new house

To generate new customers for a moving company profitably you need to understand everything about a business including its market, profitability, cost structure to operate your business and ways to increase a moving truck and so on.

Most moving businesses utilize a combination of traditional and online advertising tactics, such as search engine optimization (SEO), Google ads, blogging, direct mail, and social media, as well as moving lead providers, to attract new consumers.

You don’t have to be an SEO expert to realize how many local movers have internet reviews—but creating one is your chance to identify yourself as an industry expert.

But, if you’re just getting started, reaching out to bloggers, or the right digital marketing agency might help you generate exposure rapidly without spending a lot of money.

To generate new moving customers you need to promote your moving company in the best possible way online and offline.

How Much Do Leads Cost in Moving Business?

We’re all aware that keeping the cost of a moving lead under $150 is your primary aim. Is that even possible? Should moving business increase their budgets? Here’s how we see it:

The price of leads varies based on the sector. Business items, for example, have an average lead price of $132 whereas technology has an average lead price of $208. Unfortunately, there is no particular average lead price for the moving and storage market.

Lead prices might also differ based on the size of the organization. A Small moving company with about 1-50 workers may pay $147 for a lead, while a larger business with 51-200 employees may pay $180. The average cost per lead across all sectors in 2019 was $198.

The manner of generating leads might also have an impact. So if you are starting a new business, you must be careful about this factor.

Lead creation through trade shows and events, for example, may be costly, with an average lead price of $811.

Referral leads, on the other hand, may cost as little as $73, while search engine advertisements can cost as much as $110. Lead expenses for content marketing and SEO can be as low as $92 and $31, respectively. Remarketing can cost as little as $31, although conventional marketing can be costly, with an average lead price of $619.

Finally, the cost of leads might be affected by the company’s income. Businesses with $1 million in sales may have an average lead price of $166, while those with $500 million or more may have a lead price of $429.
=You can surely hire an amazing digital marketing agency, to increase the profit and decrease the moving leads cost.

SEO for moving companies is a vital need these days.

They will ensure to utilize all the mainstream digital channels like search engines, social media marketing, and paid advertising to generate moving leads. The experienced team knows the best possible way to market and advertise your moving needs.

The digital transformation agency will help you identify the most effective keywords for your ads and landing pages, and run targeted paid campaigns to reach the right targeted audience at the right time.

With their knowledge, they can assist you in achieving better outcomes and lowering your lead cost, which may lead to more income and growth for your moving company.

Here is a case study to prove the same:

A moving company was having difficulty generating substantial leads at a fair price. They were aware that they needed to strengthen their online advertising campaigns in order to create more leads and lower their cost per lead.

Solution: The moving company collaborated with a digital advertising firm specializing in advertising removalist company. The firm began by thoroughly analyzing the company’s current marketing activities and identifying many areas for improvement.

They then created a thorough digital marketing plan that includes the following elements:

Search Engine Optimization (SEO): The agency improved the company’s website for search engines by employing relevant keywords and optimizing its landing pages. This boosted organic traffic to the website, which created more leads.

Pay-Per-Click (PPC) Advertising: The agency executed targeted PPC advertisements on search engines and social media platforms to attract potential consumers who were actively searching for moving services. They deployed advanced targeting tactics to reach the appropriate audience at the right time, lowering the company’s cost per lead.

Content Marketing: The agency generated engaging blog entries and social media material that gave vital information to potential consumers. This helped the firm establish itself as an authority in the moving business and produced additional leads through word-of-mouth and social media.

The moving firm was able to significantly boost its lead-generating efforts by utilizing these digital marketing methods. The firm noticed the following results in the first few months of working with the digital advertising company:

  • Increased website visits by 55%
  • Cost per lead is reduced by 40%.
  • Lead conversion rates have increased by 25%.

Overall, the firm was able to create more high-quality leads at a lesser cost, which increased revenue and helped the company grow.

Moving Companies Profit Calculation

COGS (15-20% sales): These are variable costs that mostly comprise gasoline, tolls, and vehicle fleet repair and maintenance charges.

Personnel (45-50%): by far the most expensive aspect of relocating a firm. You’ll need a lot of people to drive the cars and manage the pickups and deliveries. Moving business earns an average of $35,000 a year. In addition to movers, you will want support and administrative personnel (HR, finance), especially if you have a large workforce.

Marketing (5% of total): Moving firms must continually invest a significant amount of money in order to gain new clients. Removalists profit from low client retention, therefore you must invest money to continue acquiring new consumers.

Other (10%): comprises rent, utility bills, accounting, legal fees, and other expenses.
Assuming you produce $100,000 per month in sales, you would spend $75,000 to $83,000 per month to run the moving company (excluding D&A, taxes and interest).

Why Is A Moving Company So Expensive?

From 2019 to 2020 (January to April), permanent change of address requests increased by 3.3% in the United States, while temporary requests increased by 41.3%.

According to a Pew Research Center, almost one-fifth of U.S. people relocated or knew someone who did as a result of Covid-19 in 2020, while many more tried a temporary relocation or transferred mail to another address but did not wind up relocating permanently.

Most people think that removalists are very expensive. Removalists are expensive because they have to cover a lot of genuine expenses. You may have great movers around who would have no hidden cost.

You may be confident that your money is being effectively spent, from labour for packing and loading the moving truck in every scenario to gasoline expenditures and equipment fees.

Ways to Increase profits for a moving service business

Profit and loss are a part of every business. But, you can surely increase your profit if you use the right advertising strategies and control your expenses.

Rent Trucks

A truck is the most important tool and asset in the moving company. Nevertheless, buying a truck is not always a good idea, especially if you’re new to the business. As a result, you should lease trucks rather than purchasing them.

Certainly, it will consume a significant percentage of your earnings, but at least you won’t be concerned about upkeep during the off-season. This would assist manage your spending over the winter when the home market is normally slow.

Renting a truck, on the other hand, is not a long-term solution. You may take the plunge and spend if you have established a brand for your moving company in the industry and anticipate a continuous stream of leads.

Lead Generation Source

Creating high-quality leads is critical for increasing profitability in a moving business. More potential clients can be attracted to your website by utilizing efficient lead-generation methods such as SEO, PPC advertising and CRM for moving companies.

Furthermore, social media marketing and email marketing may help you create relationships with potential consumers and keep your services at the forefront of their minds. Referral programs and strategic alliances with real estate agents and property managers can also deliver a consistent flow of quality prospects.

A moving business may enhance its earnings and client base by focusing on these lead-creation sources.
Attend activities where realtors congregate. This is an excellent source of high-quality leads.

Hiring Part-Time Workers

Employ part-time workers. If you are one of the new and small movers, you can’t afford to have a large roll of staff on payroll, and having to pay salaries during the off-season might have a negative impact on your cash flow. Several large moving businesses in the United States choose this path while developing their team.


You can convert your leads with follow-ups. You can use email marketing and send them messages to convert more leads effectively.

Wise Use Of Credit Card

Pay online, especially with a business credit card. This process makes it possible to buy time and improve your cash flow. But, don’t overuse credit cards because it might lead to overspending.

Think wisely about their usage.

Decrease Fuel Consumption

Because fuel consumption is one of the most expensive aspects, ensure that you minimize fuel consumption using a variety of methods such as:

  • Using gas cards
  • Optimization of the route
  • Vehicle maintenance that is proactive
  • Keeping a constant cruise speed
  • Making use of adequately inflated tires

Operating a profitable moving company is all about careful financial management and constantly searching for ways to improve. Furthermore, it is about increasing leads by focusing on keeping your consumers happy.

If you’re a new moving company, you should always be kind to consumers and make things easy at first so they can advertise your firm and help you produce more qualified leads.


Overall if you are thinking about a career in the removalist business, it is a good decision. You will have a bright future if you focus on more profit and less expense. You can easily earn a good income if you follow our advice.

You can operate in different cities, states, or countries with an office in every location. You can begin by opening one office and slowly expand with time and profit.